B Corporations, Beneﬁ t Corporations and Social Purpose · PDF file · 2012-10-10B Corporations, Beneﬁ t Corporations, Social Purpose Corporations. A white paper presented by

1

A whitepaper by

October 2012

ContentsWhy do we need a new type of corporation? .........................................2

What is a B Corporation? .................................................................................2

What does it mean to incorporate as a Benefi t Corporation

or Social Purpose Corporation? .....................................................................4

How does a company become a B Corporation? ...................................5

What are the benefi ts of being a B Corporation? ..................................6

Key takeaways, opportunities & challenges .............................................8

B Corporations, Benefi t Corporations and Social Purpose Corporations:

Launching a New Era of Impact-Driven Companies

A new way to bring

together business success

& social good

2 B Corporations, Benefi t Corporations, Social Purpose Corporations. A white paper presented by NBIS. (www.NBIS.org)

B Lab is a non-profi t organization with the mission of using the power of business to address the world’s most pressing challenges. In its goal of using business as a force for good, B Lab focuses on three initiatives:

• Building a community of Certifi ed B Corporations so one can tell the difference between “good companies” and just good marketing

• Accelerating the growth of the impact investing asset class through use of B Lab’s GIIRS Ratings & Analytics by institutional investors

• Promoting legislation creating a new corporate form that meets higher standards of purpose, accountability and transparency.

B Lab certifi es companies in a similar way that Fair Trade USA certifi es Fair Trade Coffee or the U.S Green Building Council certifi es LEED buildings. In this role, B Lab established a standard for responsible and impact-driven business. In addition, B Lab attempts to solve the is-sue with existing corporate law where shareholder value maximization is the sole fi duciary responsibility of the corporation.

Two independent Standards Advisory Councils oversee B Lab’s certifi cation standards, including the GIIRS rating system for impact investors. B Lab is backed by a diverse set of funders, including the Rockefeller Foundation, USAID, and a variety of corporations, private foundations and individuals. There are currently about 20 employees across four different locations in the US.

B Lab’s website is www.bcorporation.net.

Why do we need a new type of corporation?

Business has a demonstrated power to deliver results. However, too often these results are biased toward the benefi t of shareholders and at

odds with what makes our society a better place. Government agencies may attempt to regulate impacts, and non-profi ts step in to address problems, but neither has the reach or the power of corporations. What if there were a different type of corporation that brought together business success and social good?

The idea behind the new concept of what can be called an impact-driven company is to fi ll this gap by formally extending the purpose of a corporation beyond creating shareholder value toward an entity that generates impact or benefi ts for society as a whole. The old model was to take, make, sell and reap profi t, which created material wealth; but it also left a legacy of environmental destruction, poverty and imbalance of resources. The essence of these new “responsible” corporations is that they recognize the imperative to do no harm and create positive impact throughout the value chain.

This paper intends to provide a brief overview of the emerging forms of impact-driven companies, highlighting in particular the

B Corp Certifi cation which has been around the longest and is not limited by geographic (or jurisdictional) boundaries. We will also cover (in less detail) what it means to incorporate as a Benefi t Corporation or a Social Purpose Corporation.1

The concept of Corporate Social Respon-sibility (CSR) was an earlier and still quite prevalent approach to generating societal benefi ts through business. CSR arose when companies began to notice that an increas-ing number of customers cared about more than just price and quality; they cared about a company’s demonstrated commitment to social and environmental issues as well. Companies became more involved in charitable activities and started reporting on their efforts to improve conditions for their employees and other stakeholders. The idea of sustainable business practices broad-ened this concept with a stronger focus on environmental impact and specifi c metrics, such as an organization’s carbon footprint. However, the suspicion persisted that there were some companies who treated CSR and sustainability primarily as a market-ing tool that was not well integrated with the operations of the company. This often resulted in accusations of “green washing” and impacts on society were questioned. At the same time, executives in many compa-nies struggled to justify investments in CSR and sustainability when the link to increased profi ts was diffi cult to establish.

What is a B Corporation?

In response to the negative impacts of traditional corporations, a new type of corporation with a formalized purpose that includes generating positive impact for society in its core was needed.

The corresponding legislation, however, takes time to develop and be adopted. Independent of the legislative process, a new business certifi cation system was introduced to recognize impact-driven companies: “B Corporations” (“B Corps”). In 2007, a non-profi t organization called B Lab was founded to establish and manage the B Corporation certifi cation system which has helped to build a constituency of businesses that is attractinglawmakers’ attention.

“Through their products, practices, and profi ts,

businesses should aspire to do no harm and

benefi t all.” —From B Lab’s “Declaration of Interdependence”


“The new forms of corporations are mobilizing companies toward a sustainable future. Under the banner of ‘profi table sustainability’ these pioneering companies are actually

recovering the ‘corporate charter’ as a social invention which was originally conceived to bring together the power of private enterprise with the public good.”

—Karl Ostrom, PhD, Co-Executive Director of NBIS.

“I’m continually impressed by the industry leaders I have the

privilege to work with. They recognize a broader defi nition of value

beyond the bottom line. It’s no surprise to me that many of their companies have grown

during the nation’s worst economic downturn.”

—Stephanie Ryan, Community Development, B Lab

B Corporation certifi cation is the corresponding label that allows a company to verify and demonstrate its benefi cial impacts on society and environment through a third-party assessment

that investors and customers can trust. Internally, B Corp Certifi cation provides a formal framework that can help management make decisions that address environmental and social concerns in a systematic way. Since its inception, B Corporation certifi cation has been quickly adopted with growing support from key stakeholders—companies, customers, and investors. According to B Lab, there were over 600 certifi ed companies as of September 2012. B Corporations span across all major regions of the US and are also rapidly gaining international traction, as illustrated by fi rst chart.

As shown in the second chart, the cumulative revenue of all certifi ed B Corporations is growing fast, reaching $3.4 billion in just fi ve years with a compound annual growth rate (CAGR) of over 30%.

The third chart shows that the average revenue of newly certifi ed corporations is trending upwards, refl ecting the growing interest of midsized companies.

600

500

400

300

200

100

0

Central

West

South

East

North

FounderCompanies

Number of certified B Corps

2008 2009 2010 2011 As of July 2012

U.S.

International

0

500

1000

1500

2000

2500

3000

3500

4000Cumulative revenue of all B Corps

$Mill

ions

Average revenue of newly certified B Corps

0

1

2

3

4

5

6

7

8

$Mill

ions

Source: B Lab

Source: B Lab

Source: B Lab


Beyond the B Corporation certifi cation system, B Lab and other advocates have made signifi cant progress in establishing

a designated legal structure (the equivalent of an LLC, C Corp, or S Corp etc.) that enables companies to incorporate as corporations with a foundational acknowl-edgement that they have a responsibility to more than just shareholder profi t. In April 2010, Maryland was the fi rst state to pass a Benefi t Corporation bill. As of September 2012, similar bills have been enacted in eleven US states (see table below), sparking a wider movement toward legal recognition of impact-driven companies.

Incorporating as a Benefi t Corporation is often confused with being certifi ed as a B Corporation, but there are signifi cant differences. Unlike B Corporation certifi ca-tion, a Benefi t Corporation is a legal struc-ture similar to other forms of corporations, but with greater purpose, transparency and accountability. The status is a fundamental structure that enables (and requires) the company to consider all stakeholders (not just shareholders) when making decisions. It empowers management and employees of Benefi t Corporations to focus on integrated value and clarifi es the intent and expectations for the company, its board

and investors. This offers legal protection for considering the non-fi nancial interests of the workforce, community, and environment when making decisions. B Lab is working as an advocacy group for this legislation.

After much discussion, and with the approval and recommendation of the Washington State Bar Association2, Washington legislators approved a new form of incorporation called the Social Purpose Corporation (SPC)3. This was done instead of adopting a Benefi t Corporation bill similar to other states4. The Social Purpose Corporation enables companies to pursue social and environmental goals alongside their efforts to provide fi nancial returns. However, Washington’s SPC bill imposes a lighter set of verifi cation and reporting requirements on companies than is required in a typical Benefi t Corporation bill. There is no externally verifi ed reporting standard— instead an SPC is required to publish and fi le an annual report on how the organization is meeting its social purpose. Also unlike Benefi t Corporations, SPCs “may” consider the social purpose in decision-making. On the other hand, all directors and offi cers of Benefi t Corporations “must” consider the social purpose in decision-making. Moreover, in terms of the independent right of action, Benefi t Corporations can be sued for failure

to pursue their social purpose, for violation of any duty or standard of conduct, or failure to post an annual report on the internet. Social Purpose Corporations cannot be sued for failure to pursue their social purposes. The SPC bill focuses on getting the fundamentals right by formalizing the social purpose mission and unleashing the management from the risk of liability. It sets a lower bar in terms of verifi cation requirements, thus providing more fl exibility and reducing the reporting burden for companies.

The table below provides a comparison between the three types of corporations discussed in this whitepaper. The follow-ing pages will primarily focus on further explaining the concept of B Corporations.

It is important to note that being certifi ed as a B Corporation is not at all mutually exclusive with being incorporated as a Benefi t Corporation or an SPC. B Corp certifi cation can be used by any company as a means to verify its alignment with an accepted set of management standards. This may be used internally to inform strategy and day-to-day decision-making or externally to credibly demonstrate sustainability accomplishments toward customers and other stakeholders.

What does it mean to incorporate as a Benefi t Corporation or Social Purpose Corporation?

B Corporation Benefi t Corporation

Social Purpose Corporation

Identity Certifi cation issued by third party (B Lab) State legal entity State legal entity

GeographicReach

Global US states as of August 2012: California, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, New Jersey, New York, South Carolina, Vermont, Virginia

Washington State

Requirements • Minimum score of 80 on the online B Impact Assessment

• Assessment review call & documentation

• Change in articles of incorporation

• Re-certifi cation assessment every two years, maintaining minimum score of 80 points

• Random selection of 10% of B Corps for annual onsite review

• Annual certifi cation fee to B Lab (tiered pricing based on revenue)

• Incorporate as a Benefi t Corporation in corresponding state

• Annual benefi t report using a third-party standard

• Incorporate as an SPC in Washington State

• Annual benefi t report


“Folks always ask me how long it takes [to get certifi ed]. While the company’s size matters, the most relevant variable is how much a company has already been paying attention to its impacts and measuring them. A company can

take 10 days, or take 10 months or longer.”—Stephanie Ryan, Community Development, B Lab

The B Corp certifi cation system was created to enable “a new type of corporation that meets rigorous and independent standards of social and environmental performance, accountability, and transparency.5”

There are fi ve major steps to becoming a certifi ed B Corporation, as shown in the fi gure below. First, applicants complete B Lab’s online B Impact Assessment which covers:

• Governance – accountability, transparency

• Workers – compensation, benefi ts, ownership, work environment

• Community – suppliers, local impact, diversity, job creation, charity

• Environment – facilities, inputs, outputs, supply chain

The assessment score must be at least 80 points out of 200 for the company to qualify. The second step is an assessment review call with a B Lab staff member. This enables B Lab to make sure questions were answered in the correct manner and calculations performed correctly, considering the unique circumstances and practices of a company. After this phone call, the company is required to submit supportive documentation which verifi es 8-10 randomly selected responses regarding the environmental and social impacts of the company.

After completing these three steps, the company needs to amend its articles of incorporation to refl ect the commitment to the vision and requirements as a B Corp to the extent possible in its state. As a fi nal step, the company is requested to sign a simple 2-page term sheet that lays out the expectations for Certifi ed B Corporations. It commits a company to certifi cation fees, the legal framework and to the “Declaration of Interdependence,”6 in essence the mission of B Lab’s work to build a new sector of the economy which harnesses the power of private enterprise to create public benefi t. This concludes the process and if the company has met the criteria, it can offi cially receive B Corporation certifi cation. Upon certifi cation a company creates a profi le for publication on www.bcorporation.net which is shown alongside a summary of the B Impact Assessment results.

How does a company become a B Corporation?

150 test questions on the impacts of the company across stakeholders.

Expected to reach a score above 80 (out of 200 available points)

Interview with a B Lab staff member

Impact Assessment

Assessment Review Call

Provide supporting documentation for 8-10 randomly chosen responses on heavily weighted questions

Supportive Attachment

Amend company’s articles of incorporation to consider impact of decisions on all stakeholders

Amending Articles

Sign and submit 2-page term sheet that lays out the expectations for Certified B Corporations

B Corp Expectation

Ongoing Requirement

Be ready for 10% randomly chosen on site review from B-Lab

Pay annual membership fee

Complete re-certification process every 2 years

1

2

3

4

5


NRG Insurance is a Seattle-based, independent insurance brokerage with a long history of innovative policies that empower employees, create a nurturing work environment, and advance customer care. Michelle Rupp, the President of NRG Insurance, aspires not only to excellence in her own company, but also to raise the bar for the entire insurance industry.

NRG Insurance became a B Corporation in February 2010 and according to Michelle Rupp the actual certifi cation process was a very manageable effort, primarily since NRG Insurance already had all the necessary data at hand and a company culture that aligned well with the B Corporation requirements. That said, getting all employees on board took some effort and working with a coach helped overcome barriers. Michelle Rupp sees business as the main player in effecting change toward a more sustainable society and cares deeply about being part of the solution. Her company moves the dial from within in the mainstream insurance industry which is generally known for a conservative mindset and has yet to recognize that B Certifi cation can be an indicator of lower risk.

For more see: www.nrgseattle.com.

Taking the B Impact Assessment is free, however, to attain and maintain certifi cation status, B Corps are required to pay an annual fee representing a small

percentage of revenue (see table below). The annual fee covers B Lab’s efforts to establish and maintain certifi cations. For example, B Lab conducts random on-site visits for 10% of B Corps to ensure credibility and accountability of the certifi cation. If the post-onsite review score is lower than 80 points, the company will be given 90 days to recover its points. If the onsite reviewer discovers that a company was intentionally misrepresenting itself on the assessment, the certifi cation can be revoked. Every two years, every B Corp must undertake the re-certifi cation process.

Annual Revenue Annual Fee As a Percentage of Revenue

Less than $2 M $500 0.025% or more$2 M - $5 M $1,000 0.02 – 0.05%$5 M - $10 M $2,500 0.025 – 0.05%$10 M - $20 M $5,000 0.025 – 0.05%$20 M - $100 M $10,000 0.01 – 0.05%Over $100 M $25,000 0.025% or less

What are the benefi ts of being a B Corporation?Like most certifi cations, becoming a B Corp is associated with an additional administrative burden and a new expense that need to be absorbed by the company. While companies that inherently care about social and environmental aspects report that B Corp Certifi cation is an easy formality, things are different for those where these aspects have not been a primary concern for the organization and its leadership in the past. The certifi cation survey is extensive (covering Governance, Workers, Community, and Environment aspects) and achieving a suffi cient score requires a minimum of responsible practices already in place. If this is not the case, the certifi cation process may take up to a year.

The following paragraphs summarize the key benefi ts that certifi ed B Corps typically experience. Many of these advantages apply to Benefi t Corporations and SPCs as well, though B Lab’s

engagement on behalf of the B Corp community provides a set of extra benefi ts to B Corps. As mentioned earlier, it is important to understand that any Benefi t Corporation or SPC can certify as a B Corp and thus elect to become part of the community nurtured by B Lab. In 2007, the Founding B Corporations certifi ed as an act of leadership. They believed that a set of standards, accountability and transparency was essential for maintaining brand authenticity and equity and they lent their leadership to make it possible and “grow a new economic sector”. Today, many companies certify with a more pragmatic mindset. Some say they use certifi cation as an internal benchmark for continual improvement, while oth-ers are motivated by different benefi ts among the ones described below.

Attract customers and differentiate your brand

There is increasing awareness among business leaders of the considerable downside risks when neglecting the issue of sustainability.7 At the same time, there are growing customer segments that value companies acting as responsible stewards of society and the environment, and they are often willing to pay a premium for the products of “a good company.” B Corporation certifi cation provides a credible way to demonstrate a company’s commitment to “doing good” as part of doing business.

Additionally, B Corps currently benefi t from increased media attention, which provides extra exposure of their brand and products to the public. Since 2009, over 1,000 articles have been written, featuring over 160 individual B Corps. B Lab also provides visibility through company profi les on its website and a directory published in the annual report.

Gain access to capital from impact investors

Socially Responsible Investment (SRI) is an investment strategy that seeks to consider both fi nancial returns and social benefi ts. A growing community of investors and philanthropists are interested in generating environmental and social benefi ts through investment in for-profi t entities that incorporate these values in their mission.8

“It is our responsibility to do the right thing, to be visible in doing so and to move the dialogue.” — Michelle Rupp, President of NRG Insurance


For decades, investors have had sophisticated methods at their disposal to model economic benefi ts when evaluating companies for invest-ment. But when it comes to assessing social and environmental benefi ts, there a reliable framework providing objective measures had yet to be established and broadly adopted. The Global Impact Investing Rating System (GIIRS) was created to address this gap. The GIIRS assessment is a rating system for impact investing; the same company assessment powers the B Impact Assessment used for B Corporation certifi cation and the assessment used for GIIRS Ratings. Investment institutions use it to evaluate individual companies or investment funds in terms of their social and environmental impact. GIIRS plays a catalytic role in attracting a growing community of impact investors and socially oriented compa-nies around a common framework that fosters transparency and a focus on data. Presently there are over 20 institutional investors who are using GIIRS as a main tool to evaluate corporations internationally, and there are over 60 funds and about 300 companies who have been rated by GIIRS. B Corps can receive a free GIIRS rating to help attract investment capital.9

Save money while doing business with like-minded companies.

To foster a stronger cohesion among the nascent community of B Corporations while supporting the build-up of an ecosystem of services for these companies, B Lab created the community of B Service Partners. It enables B Corps to access quality services from each other and from partners that provide specialized and/or discounted services to B Corps. B Service Partners are divided into 7 categories: Financial, Sales & Marketing, Systems & Implementation, HR & Offi ce Management, Educational, Consulting & Professional Services, and Products & Individual Opportunities.

B Corps offer each other generous discounts for products and services as diverse as carbon accounting software or legal consultation.

Obtain legal protection for social and environmental decision-making

Mainstream companies that are willing to do something benefi cial for society and the environment can fi nd themselves at odds with a management or shareholder mindset that narrowly focuses on earning money on a quarterly basis. Within current corporate legal structures, such decisions can lead to confl icts with share-holders that could end in a legal dispute. Benefi t Corporations (and Social Purpose Corporations) address this issue at a fundamental level by incorporating the company as an entity whose purpose includes social and environmental benefi ts. While B Corporation certifi cation does not provide legal protection at the same level, by requiring the formal step of amending the articles of incorporation, B Lab ensures that companies make their commitment to stakeholders explicit vis-à-vis shareholders. As a result, management is offi cially empowered to make decisions in the interest of society and the environment while also generating fi nancial returns.

Attract and retain quality employees

These days, pursuing sustainable business practices that include the treatment of employees and engagement with the community can be a powerful asset for recruiting and keeping great employees. One survey found that over 80% of employees from 15 developed nations preferred to work for a company that “has a good reputation for environmental responsibility.”10 Also, in a recent survey by Net Impact, 70% of college students and 50% of workers expressed that they want a job that allows them to make a social impact.11 To further support its certifi ed companies, B Lab’s website provides a job listing resource for B Corps to attract potential employees, providing a recruiting hub for certifi ed B Corps and employees who want to work for a company that makes a positive difference for society and the environment.

For private companies, B Corp or SPC election is a clear sign—not only of an expanded view of things, but of an intention to create shared outcomes that benefi t stakeholders, community, and the world at large.” — Bruce Herbert, Chief Executive Newground Social Investment

Bruce Herbert, Chief Executive of Newground Social Investment, is a nationally recognized advocate for business practices that integrate social concerns and environmental justice with business profi tability. As an investment advisor, his fi rm uses capital resources and investors’ voices to help shape for public benefi t the actions of major corporations.

“Companies that operate sustainably are profi table over the long-haul” is a central tenet of Herbert’s invest-ment approach, and this also applies to how he runs his own business. Becoming Washington State’s (and the nation’s) fi rst Social Purpose Corporation (SPC) was a very straight-forward choice for Newground. It differentiates the company by creat-ing a formalized status that marries mission with action.

As a further endorsement of this new corporate structure, Herbert recently registered a second company as an SPC. Investor Voice is “a new home for the familiar and successful share-holder advocacy work that New-ground has done since the 1990’s. It provides shareholder engagement as a stand-alone service, unbundled from managing money for a client.”

Herbert is a strong supporter of both SPC and B Corp certifi cation, and considers GIIRS a tool which has the potential to become a useful rating standard for social investments, perhaps analogous to services like Morningstar®.

For more see: www.newground.net.


As evidenced by the rapid growth of their community, B Corporations have become part of a movement toward a new form of business. The certifi cation provides a legal basis and an agreed upon standard for impact-driven companies.

In summary, we can call out the following key takeaways:

• B Corp certifi cation provides an accessible way of formalizing social and environmental objectives for a company of any type, size or location.

• The B Impact Assessment and GIIRS rating system provide an objective measure for companies’ social and environmental perfor-mance and can help identify gaps and inform a sustainability strategy.

• Impact investors are a new breed of investors that seek a social or environmental return in addition to a fi nancial return.

• B Corp certifi cation is relatively new and growing fast. Most consumers and employees have yet to learn about it, but the strong initial traction is encouraging.

• The legislative environment for impact-driven companies is still emerging but has shown major progress with Benefi t Corporation bills being adopted in eleven states as of September 2012.

With the initial wave of early-adopters among companies, investors, employees and legislators having endorsed the idea of impact-driven Corporations, the next 2-5 years will be critical in establishing a true foundation as part of the mainstream economy. After decades of focus on shareholder value, the paradigm shift of incorporating social and environmental values into decision-making will require managers to optimize for multiple (and often confl icting) outcomes between different stakeholders. Most customers have yet to learn what B Certifi cation stands for and why they should prefer B Corporations, Benefi t Corporations and

SPCs over conventional companies. Amidst the enthusiasm around the new types of companies, we need to remind ourselves that

the economic fundamentals continue to apply:

• Customers need to be compelled to buy products and services for a price that justifi es the perceived value of the product.

• Investors expect to see return on their fi nancial commitments in the form of fi nancial gains and/or social & environmental impacts.

• Companies will need to generate profi ts or raise funds to fuel their growth and expand their impact.

• Employees need to be attracted and retained with a value proposition that meets their fi nancial needs and career expectations.

If impact-driven companies can succeed along these dimensions and use their differentiation as an advantage over conventional companies, the new model is poised for success in the mainstream economy. Otherwise, they are likely going to remain a niche phenomenon that caters to a distinct, but limited audience. This fate can be overcome if companies are able to form a strong mutually supportive community and organizations like B Lab expand their reach toward larger established corporations.

The latest round of economic and environmental crises has made it clear that we need systemic solutions to the systemic problem of placing the interests of shareholders over the interests of workers, community and the environment. The concepts of B Corporations, Benefi t Corporations and SPCs provide a practical way for companies to become part of the solution and join a business-driven movement to change society.

About NBIS (Network for Business Innovation & Sustainability)

NBIS is the Northwest non-profi t dedicated to enabling professionals and businesses in driving profi table sustainability. Since its founding in 2003, NBIS has built a cross-sector collaborative community that engages businesses and individuals, as well as government and academic partners.

NBIS recognizes the powerful capacity of business to build social, environmental and economic benefi t through the way business is conducted. NBIS equips businesses and professionals with the connections, tools and resources vital to succeed in maximizing the triple bottom line.

NBIS’ networking events, peer roundtables and workshops, as well as the regional initiative By-Product Synergy NW and new online Materials Innovation Exchange, engage a wide community of businesses and professionals and empower the innovators in business from start-ups to mainstream. The NBIS Consultancy service brings proven management tools and strategies to companies to advance their sustainability advantage in the marketplace.

For more information, visit www.nbis.org or send an email to [email protected].

Acknowledgements We would like to thank the following contributors to this paper:

From NBIS – Ryan Seo, Intern, and Andri Kofmehl, NBIS Board of Directors, for coordinating the research and authoring this paper; Mary Rose & Karl Ostrom, Co-Executive Directors, for additional guidance and editing.

From B Lab – Stephanie Ryan, Stephanie Nieman, Katie Kerr and Santiago Perez for their inputs and review of content.

Additional insightful contributions were made by multiple business leaders, including Bruce Herbert (Newground Social Investment), Michelle Rupp (NRG Insurance), and Brian Howe (The HUB Seattle).

Special thanks to Jen Pennington at Rhizome Design & Images for the design of this paper.

References 1 Aside from Benefi t Corporations and Washington State’s Social

Purpose Corporation, other forms such as California’s Flexible Purpose Corporation have been introduced.

2 More information on the Washington Bar Association can be found at www.wsba.org.

3 Source: www.sos.wa.gov/corps/SocialPurposeCorporation.aspx4 California elected to introduce a similar form, the Flexible Purpose

Corporation, along with legislation for Benefi t Corporations. Source: www.sos.ca.gov/business/be/forms/fl exible-purpose-corp-and-benefi t-corp.pdf

5 Source: www.bcorporation.net/become-a-b-corp/why-become-a-b-corp6 Full text of the “Declaration of Interdependence” can be found at

www.bcorporation.net/become-a-b-corp/how-to-become-a-b-corp/120.7 For example, when Apple announced in July 2012 that the company was

relinquishing EPEAT environmental standards for its laptops, the move was followed by purchasing policy changes of major institutional customers. Their reaction threatened Apple’s business and led the company to reverse course within days.

8 Example source: Insight into the Impact Investment Market by JP Morgan and the Global Impact Investment Network (GIIN), December 2011.

9 The regular cost of obtaining a GIIRS rating is currently $2,500. 10 Source: Corporate Environmental Behavior and the Impact on Brand Values

by TANDBERG and Ipsos MORI, 2007.11 Source: Talent Report: What Workers Want by NetImpact, 2012.

Key takeaways, opportunities & challenges

Documents

B Corporations, Beneﬁ t Corporations and Social Purpose · PDF file · 2012-10-10B Corporations, Beneﬁ t Corporations, Social Purpose Corporations. A white paper presented by